The U.S. Seeks to Break Free of Russian Uranium and Prepares $4.3 Billion Plan

President Biden wants to forgo Russian uranium in the future and buy enriched domestic uranium instead. But to do so, he needs the approval of lawmakers who support the $4.3 billion plan. The plan has sent shares of uranium companies soaring.

The news sent Cameco’s stock up 12.48% in the last 5 days.
The stock of Uranium Energy Corp. rose by as much as 25.92% and Uranium Royalty Corp. rose by 12.24%.

Energy Department officials met with congressional representatives and stated that these funds are urgently needed. The disruption of Russia’s supply of enriched uranium could lead to disruptions in the operation of commercial nuclear reactors.

However, it is still not easy for the U.S. to build its own uranium industry. The country now has only one commercial plant, a factory in New Mexico owned by Urenco Ltd, a German-British-Dutch consortium.

The talks come at a time when the Biden administration is considering sanctions against imports of enriched uranium from Russia. At the same time, the possibility is being considered that Russia will also decide to stop imports. Russia accounted for 16.5% of U.S. uranium imports in 2020 and 23% of the enriched uranium needed to run U.S. commercial nuclear reactors.

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